St Galler Kantonalbank (SGKN) H1 2024 earnings summary

Executive summary

• Total business volume increased by 5.9% to CHF 96.3 billion, with managed assets up 7.2% to CHF 63.0 billion and customer loans rising 3.6% to CHF 33.3 billion in H1 2024.

• Net new money inflow of CHF 1.8 billion contributed to growth.

• Net profit declined 7.4% year-over-year to CHF 100.4 million, mainly due to lower net interest income.

• Balanced business model proved resilient despite margin pressure and lower interest income.

• Full-year 2024 result expected to be in line with the previous year.

Financial highlights

• Operating income fell by 5.5% to CHF 274.7 million in H1 2024.

• Operating profit dropped 13.3% to CHF 120.3 million.

• Commission and service income increased by 7.6%, while net interest income declined by up to 12.1%.

• Operating expenses rose by 3.1% to CHF 150 million, mainly due to higher IT and personnel costs.

• Balance sheet total increased 10.4% to CHF 45.6 billion as of June 30, 2024.

Outlook and guidance

• Full-year 2024 result expected to be on par with the previous year.

• Challenging environment due to weak German economy, geopolitical risks, volatile equity markets, and a strong Swiss franc.

• Further declines in key interest rates and gradual economic recovery anticipated.

• Positive economic growth expected in Eastern Switzerland, with sectoral differences.